Nepal Updates VAT Procedures for Nonresident Electronic Service Providers, Effective Immediately

• Nepali Inland Revenue Department updated VAT procedures for electronic services by nonresident persons
• 13 percent VAT rate applies to transactions
• VAT registration threshold is over 3 million Nepali rupees in taxable electronic services in the last 12 months
• Nonresident persons must register within 30 days of meeting the threshold
• Fine of 20,000 rupees for each instance of failure to register
• VAT returns must be filed electronically by the 25th of the month following the tax period
• Penalty for failure to file VAT returns is the higher of 0.05 percent per day of chargeable VAT or 1,000 rupees per tax period
• Procedures are effective immediately

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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